FTSE: A continuation pattern usually, it suggests a downside break is likely this week. Chart from Analyst, Nicole Elliott – Investors Chronicle.

 

FTSE SHORT TERM TRADER: Looking to re-sell on a close below the bottom of the triangle.

FTSE POSITION TAKER: Short at 7250; stop above 7300. Target the 6675 area.

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German inflation dips again
Well below ECB target

Data out this morning confirm that inflation in Germany dipped to 1.2 per cent in the year to February. It has been edging lower since October’s 1.8 per cent and has traded below the ECB’s target of 2.0 per cent since May last year; in fact, for most of the last 2 decades it’s held below that level.
The Financial Times reports that in the US the difference between the interest rate paid on the Overnight Index Swap (OIS), very closely tied to the Fed Funds target, and three month Libor has widened out of late to 45 basis points, the biggest differential since 2012. Traditionally seen as a measure of stress in the banking sector, some are suggesting Trump tax reforms and heavy issuance of Treasury Bills might be to blame.

Financial & Political Commentary

 

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